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International Business Strategy (IBS) - b

International Business Strategy (IBS) - b. Corporate strategy Business strategy Functional strategy. Corporate strategy (CS). Overall scope of activities Competition : geographic location of activities currency: balance worldwide activities country: recogni s e individual factors

sarah-fields
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International Business Strategy (IBS) - b

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  1. International Business Strategy (IBS) - b Corporate strategy Business strategy Functional strategy

  2. Corporate strategy (CS) Overall scope of activities Competition: geographic location of activities currency: balance worldwide activities country: recognise individual factors Corporate parenting in head office how to manage various businesses add parenting value - add a business to a portfolio - divest in the portfolio different styles: planning, performance control => match to the business 1b-Strategy (18)

  3. Corporate value added Corporatescope Corporate parenting Corporate strategy Business strategy Products Markets Corporate advantage 1b-Strategy (18)

  4. SM styles-I: Strategic Planning„Orchestrator” Characteristics • HQ: deeply involved at business level • Formally planning strategies • Planning lever  clear directions Performance • Longer-term view: short term financial suffering • Planning: time consuming  centre losing objectivity • Business unit: may be frustrated 1b-Strategy (18)

  5. SM styles-II: Strategic Control„Coach” Characteristics • Strategic development: left to units • No directions are set, no coordination • Capitol projets: business initiates • Business units: detailed reports Performances • Balance long term - short term financial goals • It is difficult • No exploiting synergies 1b-Strategy (18)

  6. Characteristics Strong delegation of responsibility Budget process and aggreeing budget critical Budget: contract Strong emphasis on short-term payback Financial performance monitored in detail Performance Maximise short-term financial performance Failure: organic growth Linkages not developed Strong incentives SM styles-III: Financial Control„Controller” 1b-Strategy (18)

  7. 1b-Strategy (18)

  8. Business strategy (BS) How a business seeks to compete in its product-market? create competitive strategy large range of businesses Develope sustainable competitive advantege emulate existing rivals: same game inventing new ways: new game 1b-Strategy (18)

  9. Yamaha piano ovearall demand started decline 10%/year same game: fight harder, more effictively new game: fresh eye for opportunities superb acustic piano (combination of digital amd optical technology) 40 million piano => refitting with PC & disk additional digital value-creating possibilities 1b-Strategy (18)

  10. Same game Delayering Divestment Deteriorating performance 1b-Strategy (18)

  11. New Game Improving performance New vision and capabilities New strategic recipe 1b-Strategy (18)

  12. Characteristics Identify market segments Positioning in a segment Serve more effectively Characteristics Strategic innovation First mover advantage Avoidance head-to head competition Strategic intent Outcompeting rivals Similar strategic approach Doing the same thing better Strategic intent Strategic intent investing in new strategic recipes Innovation, vision Potential outcome Parity at the best New strategy: incremental approach Potential outcome Competitive superiority Distinct advantage ‘fundamental’ approach 1b-Strategy (18)

  13. Competition for industry foresight and intellectual leadership Core comptencies Competition for market position and share STRECH Competing for the Future 1b-Strategy (18)

  14. Corporate strategy: forward integration: closer to the customer Market penetration Product expansion BS Corporate strategy: related diversification Corporate strategy: unrelated diversification Product development Geographical expansion Corporate strategy: backward integration: closer to the source of inputs 1b-Strategy (18)

  15. Functional strategy (FS) How the different activity areas of a business contribute to the overall business? Changes in BS  changes in FS New FS  changes in BS Key requirements: to fit and match 1b-Strategy (18)

  16. BUSINESS STRATEGIES Bi-directional Human resources Finance FUNCTIONAL STRATEGIES Logistics Marketing Operations 1b-Strategy (18)

  17. 1b-Strategy (18)

  18. Business performance, corrective adjustments Functional Str. Corporate Str. Business performance Business Str. Corrective adjustment 1b-Strategy (18)

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